Tokyo Gas and Kansai Electric Power have signed a strategic cooperation deal that will see the two Japanese utilities join forces on LNG procurement.
In a joint statement on Monday, the two companies said they intend to cooperate on securing more flexibility in LNG procurement that would enable them to cope with the uncertain conditions in the domestic and international energy market.
Additionally, Tokyo Gas and Kepco have reached a deal to form a technology partnership in order to advance the operation and maintenance of their LNG-fired power plants.
According to the statement, the companies intend to cooperate on procurement from the Woodside-operated Pluto LNG project in Australia.
Tokyo Gas has a 15-year deal to import 1.5 mtpa of LNG from the project while Kepco booked 1.75 mtpa of liquefied natural gas for the same period. The first supplies from Pluto LNG started in 2012.
The two utilities also reached a framework agreement for flexibility and exchange of supply from Dominion’s Cove Point LNG project that is expected to start delivering cargoes from 2017.
Tokyo Gas has a 20-year deal in place to purchase 1.4 mtpa while Kepco agreed to buy 800,000 tons of LNG per year.
LNG World News Staff